The Central and State governments have various education loan schemes that further support students seeking financial aid. Read on to know more about some of the most notable schemes in India.

Most Notable Educational Loan Schemes

Listed below are some popular study loan schemes that extend financial support to students in need.

Vidyalakhsmi Portal

This purpose-built portal allows students to find a suitable educational loan offer hassle-free. They can also use the portal to apply for funds through education loan providers via a common application form known as CELAF. Individuals can also keep track of their application status and related details on the portal.

Credit Guarantee Fund Scheme for Education Loan or CGFSEL

The Indian Government introduced this scheme to extend affordable study loans. Under the CGFSEL, one can avail up to Rs.7.5 lakh without collateral or a third-party guarantee. 

Central Government Scheme of Interest Subsidy on Educational Loan

Operated by the Indian Government, this scheme extends monetary support to students hailing from the financially weaker sections of India. The subsidy on offer is applicable to an education loan of up to Rs.7.5 lakh, even if the total amount is higher. Individuals must meet the below eligibility parameters to avail of funds under this scheme.

• The applicant must secure admission to a recognized college in India
• The gross annual family income of the applicant must not exceed Rs.4.5 lakh

Individuals need to submit necessary documents along with the application to apply under this scheme.

Scheme of Interest Subsidy on Educational Loan

This education loan scheme is exclusively for students belonging to the OBC (other backward class) and EBC (economically backward class) categories pursuing a degree abroad. The eligibility criteria for this scheme include:

• Admission at a higher and post-graduate level
• An annual family income not exceeding Rs.3 lakh and Rs.1 lakh for OBC and EBC, respectively

Individuals need to submit income tax details with the application.

Padho Pardesh Scheme

This is a tailor-made education loan plan that provides financial support to students belonging to minority communities. Following are some highlights of this plan:

• Only applicants pursuing Ph.D, Master, or M.Phil are eligible 
• The applicant’s family income must not exceed Rs.6 lakh per annum
• They need to submit income proof with their application.

This scheme offers education loans for higher studies, and it is solely reserved for this.

Apart from these notable schemes, several other educational loan plans are available to provide financial support to individuals in need. However, the amounts offered by these schemes are limited, and the application process is long-drawn. Individuals can easily bypass this hassle by opting for a loan against property for education.

For several years now, the cost of higher education has been steadily rising, both on a national and international level. Today, the cost to attend a reputed national institute could cost you several lakhs of rupees, just for the tuition alone. These costs are much higher with international colleges as you also have to account for visa costs, accommodation fees, and much more.

Naturally, not many can afford such high fees out of pocket, which is why it is quite common for students to avail financial assistance through an education loan. Thanks to new-age fintech provisions, these offerings are relatively easy to avail of as many lenders have relaxed education loan eligibility requirements. For more insight on the general education loan eligibility criteria and the documents required to process this loan, take a look at these pointers.

Education loan eligibility criteria

The traditional education loan is offered to students looking for funding. As a result, the criteria are very different and have much to do with the student’s academic background. It generally differs from lender to lender, but here is a list of the general criteria to be aware of.

• The applicant must be a residing citizen of India.
• The applicant must be over the age of 18 to avail of the loan. Applicants that don’t meet the age requirement will need their parents to apply for the loan.
• One must have a stellar academic background.
• The applicant must have secured admission to the university/college in question.
• The applicant must choose a technical or professional course, as lenders prefer job-oriented courses.

 Financing higher studies by availing a loan against property is quite convenient and simple. Lenders offer up to 70-80% of a property’s value as a study loan that can be utilised to finance one’s education both in India and abroad.